Pandora IPO valuation could hit $1.4B

Pandora Media Inc. pegged the offer price for its planned IPO at between $7 and $9 per share in a regulatory filing Thursday, which could raise up to $141.6 million at a valuation of more than $1.4 billion.

Oakland-based Pandora, which streams music to listeners according to parameters they set like genre or artist type, plans to sell 5 million shares, and stockholders plan to sell 8.6 million shares. With 158.7 million outstanding shares, the valuation of the company would land somewhere between $1.1 billion and just over $1.4 billion.

Pandora claims 90 million registered U.S. users and fast growing revenue, though it has been operating at a loss and expects to continue to do so through its 2012 fiscal year. Revenue has grown from $55.2 million and $137.8 million in the last two fiscal years and $51 million in the three months ended April 30, with losses of $16.8 million, $1.8 million and $6.8 million during the same periods, respectively.